Motivation

• One of the primary reasons to measure employee performance is to provide a baseline marker by which the employee can see how much or how little she improved over a given amount of time. Without having some way of knowing where the employee started or where she was during her previous evaluation, it is impossible to know how much the employee progressed. If an employee knows that she improved since her last evaluation, she will have the motivation to continue to improve, especially if some type of award or bonus is involved. This is also effective for the employer because it will increase production.
  
  

Recognition

• Another reason that it is important to measure and evaluate the performance of employees is that it shows the employee that an employer recognizes and cares about the quality of work that the employee completes. Employees who feel appreciated by their employer and are recognized for outstanding work are more likely to remain loyal employees and care about the well-being of the company. Employers benefit from committed and loyal employees who contribute to the success of the business.
  
  

Training

• Another primary advantage of measurement and evaluation for both employees and employers is that it offers the opportunity for additional training and instruction. Employers have the opportunity to pinpoint the exact areas of improvement that employees need to make. Employers can then develop employee-specific training designed to help the employee perform on the job. Employees benefit by learning new skills and having the opportunity to show the employer that they can respond to constructive evaluations in a positive manner. This can lead to advancement later on because it allows employees to showcase their skills to employers throughout the training process.
  
  

Consistency

• Employers that use consistent forms of measurement and evaluation for all employees will benefit from doing so in that it can allow the employer to standardize work practices. When employees know they must meet specific criteria required across the company, they will attempt to perform to this standard. This also allows employers to develop pay structures based on statistical performance, which can reduce inequality of pay between employees. Employees benefit from knowing exactly what they are expected to do and to what level they should perform. Measurement and evaluation takes the guesswork out of trying to please the employer.